Personal income tax
The government will increase the family tax base allowance in two stages. First, the current amounts will increase by 50% from July 1, 2025, and then they will double compared to the current amount from January 1, 2026. As a result of this increase, from 2025, employees will retain a net income of HUF 15,000 per month instead of HUF 10,000 for one child, HUF 60,000 instead of HUF 40,000 for two children, and HUF 49,500 per child for three or more children.
If a tip is not given directly to the employee by the customer (which is already considered tax-exempt income under current regulations) but is collected by the operator of the establishment (e.g., via card payment), it can be passed on to the employee tax-free, provided that the collected tip is properly recorded in a separate register.
An intellectual property product can be contributed to a business entity tax-free by its original creator, up to the value specified in the founding document of the company.
A new sub-account called "Active Hungarians" will be introduced within the SZÉP Card system. In addition to the current HUF 450,000 annual limit of the SZÉP Card, an additional HUF 120,000 per year can be granted to employees at a discounted rate specifically for sports and recreational purposes.
In 2025, 50% of SZÉP Card benefits will also be usable for home renovation purposes.
Employees under the age of 35 can receive up to HUF 150,000 per month (HUF 1.8 million per year) as a fringe benefit specifically for rent payments or mortgage repayments. Any amount provided beyond this limit will be taxed as a specified benefit.
Value-added tax
The reduced 5% VAT rate currently applicable to new residential properties will remain in effect until December 31, 2026, provided that the building permit becomes final by that date. Under certain conditions, the reduced tax rate may also apply to properties handed over by December 31, 2030.
From 2025, the special place-of-supply rule will no longer apply to online events and their ancillary services. Currently, for services granting access to cultural, artistic, scientific, educational, entertainment, sports, or similar events (including exhibitions, fairs, and presentations), as well as related ancillary services, the place of supply is where the event is physically held. However, for online events, the general rule will apply instead, meaning that the place of supply will be the location where the business customer is established.
The introduction of the e-receipt will be postponed by six months by the Government, with the new planned implementation date set for July 2025.
E-receipts can only be issued and generated electronically. The issued e-receipt will be accessible to the purchaser of the product or the recipient of the service in the receipt repository through a buyer application.
Upon request from the purchaser of the product or the recipient of the service, or in cases specified by law, a paper copy of the issued e-receipt must be provided.
The mandatory data content of electronic receipts (e-receipts) will be more extensive than that of paper receipts. In addition to the data normally included on a receipt, e-receipts must also contain the following information: the name of the sold product, its global trade item number (GTIN), quantity, applicable tax rate percentage, reference to tax exemption, and reference to margin scheme taxation.
Taxable persons must report receipt data to the Tax Authority within three calendar days of issuance if the receipt was not issued using a cash register or an electronic cash register. This data must be reported on the NAV platform daily, aggregated and broken down by tax rate.
The assignment of VAT deduction rights related to product imports to a customs representative will be subject to stricter administrative conditions in the future. Even if the current legal conditions are met, an importer may only assign its VAT deduction rights to an indirect customs representative if it is required to file monthly tax returns and is not classified as a high-risk taxpayer. Importers without the trusted taxpayer status under the Tax Procedure Act must also meet the additional condition that the indirect customs representative's partner audit must not identify any tax risks. Additionally, the indirect customs representative must report the audit results to the state tax and customs authority. This partner audit must be conducted before entering into an indirect customs representation contract and, in the case of an ongoing mandate, must be performed on a monthly basis.
As part of the VAT return, data reporting on incoming invoices must now include invoice amounts without rounding to the nearest thousand forints. However, the VAT return lines related to incoming invoices will continue to present data rounded to the nearest thousand forints.
Corporate income tax
In the field of corporate income tax, entities subject to the global minimum tax will be required to submit data reports and tax returns for the first time by November 20, 2025. The tax package establishes several detailed rules regarding calculations related to the global minimum tax. Hungarian members of affected corporate groups must submit mandatory data reports concerning themselves, other domestic group members, and the ultimate parent entity. The deadline for this submission is December 31, 2024, and we have compiled more detailed information on this topic in a separate newsletter.
In the event of the termination of group corporate income tax (TAO) status, former group members must submit a special tax return within 90 days of termination.
The scope of eligible support categories for tax benefits related to team sports funding has been expanded. From now on, support can also be provided to national sports federations of team sports for covering the operational costs of sports-related real estate. The amount of support granted under this category cannot exceed 80% of the real estate's operational costs.
From 2025, depreciation can also be accounted for on land used for the storage of hazardous waste.
Other taxes
Excise tax, motor vehicle tax, and acquisition duty: Starting in 2025, the law introduces automatic, inflation-adjusted tax increases (indexation) for certain taxes, including the excise tax on fuel and alcohol, the motor vehicle tax, and the acquisition duty. The rate of indexation corresponds to the average inflation rate measured by the Hungarian Central Statistical Office (KSH) on July 1 of the year preceding the tax year. As a result, the statutory tax rates for these taxes will increase by 4.1% in 2025. The applicable tax rates will be published by the National Tax and Customs Administration (NAV). From 2026, indexation will also be extended to additional taxes, including the company car tax, registration tax, and tobacco product tax.
The fixed monthly company car tax rates will increase by approximately 20% in 2025. Additionally, from 2025, plug-in hybrid vehicles classified as 5P and 5N (with a purely electric range of at least 25 km and 50 km, respectively) will no longer be considered environmentally friendly vehicles. As a result, they will lose their exemption from the registration tax, which will now only apply to purely electric vehicles. The exemption from the company car tax will also be removed for these categories. However, for companies established before January 1, 2025, the tax exemption will only be discontinued from 2026.
Retail surtax: From 2025, platform operators that provide online interfaces for retailers to sell goods will also be subject to the retail surtax, even if they do not engage in direct retail activities themselves. The law will also impose a tax on the Hungarian revenues of foreign platforms, but only for goods delivered within Hungary.
Special tax on credit institutions and financial enterprises: In 2025, reduced tax rates will apply. Companies with revenue up to HUF 20 billion will be taxed at 7%, while those exceeding this threshold will be subject to an 18% tax rate.
Advertising tax: The advertising tax rate will remain at 0% in 2025.
Social contribution tax (szocho): The law tightens the exemption conditions for capital gains on Long-Term Investment Accounts (TBSZ). Social contribution tax (szocho) exemption will only apply if full income tax exemption conditions are met, meaning that the savings remain in the TBSZ for at least five years. If the savings are withdrawn after 3–5 years, an 8% szocho applies, while withdrawals before three years will be subject to a 13% szocho.
Unless otherwise specified, the social contribution tax payable by the payer must be declared and paid quarterly.
Tax Procedure: A new tax authority procedure, the data reconciliation procedure, will be introduced. Under this procedure, the National Tax and Customs Administration (NAV) will notify the taxpayer to clarify any discrepancies or errors found in the data available to the authority, originating from the taxpayer or other taxpayers. The taxpayer will have 15 days from the date of notification to respond. Failure to meet this deadline may result in a HUF 300,000 tax penalty.
Obligation to Open a Payment Account: The Hungarian branch of a foreign company will also be required to open a Hungarian payment account.
Accounting: From 2025, the threshold for the simplified annual financial statement will increase from HUF 1.2 billion to HUF 2 billion for the balance sheet total, and from HUF 2.4 billion to HUF 4 billion for annual revenue.
Regarding the thresholds for the consolidated annual financial statement, the balance sheet total limit will rise from HUF 6 billion to HUF 10 billion, while the annual net revenue threshold will increase from HUF 1.2 billion to HUF 2 billion.
The audit exemption threshold for revenue will be raised from HUF 300 million to HUF 600 million, while the 50-employee limit will remain unchanged.